Embrace Home Loans

Integrity

I really start to question the actual knowledge, that the LO's of Embrace Home Loans have, when I'm dished out a pile of BS, just to get me to apply for a mortgage loan through their company. I recieved one of their solicitations once, back in 2009, so I was curious, and spoke with a guy named Ian Aubourg. He tried selling me on a mortgage refinance, went through quoting the rate, the reputation of the company, and then tried to sell me on the fact, that they would take my escrow money, which is supposed to be used to pay my RE taxes and my homeowners insurance, and they'll invest it into a HIGH-YIeld money market account. I then asked him, what types of securities they would invest my moeny in, and he coudn't answer that. Little did he know at the time, that I am a mortgage loan originator, and have been in the industry for 15 years, and that if they did just that, without disclosing to me as to how my money would be invested or didn't give me the choice as to what types of securities to invest my money in, then they would be breaking every TIL, HMDA, and RESPA law. Not only that, but I also questioned, that in the case of a monetary loss, because let's face it, HIGH-YIELD means HIGH RISK, how would I be guaranteed or insured against any such loss, and he could answer that either.

Comments

In response to RUKIDDINGME, it is difficult to imagine the conversation you claim to have had with our loan officer, but there are several points in your comments that need to be addressed. First of all, there are laws both state and federal, that require a lender like Embrace to maintain its accounts such that Escrow Funds are always available to pay the borrower’s taxes and insurance, but none that discuss the Investment of those funds on the borrower’s behalf. Not only is the term “High Interest Money Market” a contradiction in terms, no loan officer at Embrace would suggest that we as a Lender were going to “invest” your Escrow funds into some risky venture. Not only is it unreasonable, regulations prevent it. Further, your experience as a Mortgage Loan Originator should tell you that regulations governing how and in what vehicles anyone’s money may be invested have nothing to do with the Mortgage Lending Business. TILA (Truth In Lending Act) and HMDA (Home Mortgage Disclosure Act) do not speak to the terms of Escrow Accounts. And while RESPA does set out rules for Escrow Accounts, it does not consider the “investment” of Escrow Monies, which are largely governed by State rules. In Rhode Island, regulations require that the lender or servicer pay interest to the borrower on any amounts held in an Escrow account at a rate stipulated by the State. Other states might require the type of account in which such funds must be maintained. We can only imagine that there must have been some misunderstanding in the conversation between you and our representative. It is likely that if you had asked about the investment of Escrow Funds, he would not have had an answer as it is not something a loan officer would normally discuss, but could have received one in minutes from our Servicing Department. And even if he were going to try and wing it, he certainly would not have attempted to put you at ease by telling that we would invest your money in junk bonds.

Wow! I could be mistaken, but I do believe I have just been called a liar. That's very interesting, considering that when most companies, hear anything negative from a customer or potential customer, they at the very least will take those complaints, and even ask for suggestions, and try to find some new strategies, to make sure the customer experienece is more positive the next time, so they can create more repeat business, and they could range from a dept store, to a fast-food chain, to gas station.
Your answer, cleakas@embracehomeloans.com, would make REASON #2, as to why I would not do business with EMBRACE HOME LOANS. I'm very well aware of what I was told, which made my decision to just hang up the phone, so much easier.
Being a licensed originator, in almost 40 states, I'm very well aware of the laws surrounding the mortgage industry. I also know that customers need to be given answers, that are more forthright, and with more integrity, than the answers I have been given, both then and now

I was in the process of using your compamy Embrace to refi my home but with all the negative compliants I have changed my mind. I knew your offer was too good to be true, anything that easy is not always the best deal. So glad I read the reviews before I got caught up in the maddness.

Good for you, CM Lee. Don't get tied up with that company in any way, shape or form. They will make you promises, from here to the moon, and then when the ball gets dropped, you'll never hear from them ever again.